RBI Imposed Monetary Penalty of Rs 1.7 crore on Ola Financial Services Private Limited

RBI Imposed Monetary Penalty of Rs 1.7 crore on Ola Financial Services Private Limited The Reserve Bank of India (RBI) has imposed a Rs.1.7 crore penalty on Ola Financial Services for not complying with the regulator’s ‘know your customers’ (KYC) guidelines. As Per Press Release: The Reserve Bank of India (RBI) has imposed monetary penalty of ₹1,67,80,000/- (Rupees one crore sixty seven lakh eighty thousand only) on Ola Financial Services Private Limited (the entity) for non-compliance with certain provisions of the Master Directions on PPIs dated August 27, 2021 (as updated from time to time) and the Master Direction – Know Your Customer (KYC) Direction, 2016 dated February 25, 2016 (as updated from time to time). The fine was issued in accordance with the authority granted to the RBI under Section 30 of the Payment and Settlement Systems Act of 2007. This action is taken because to a lack of regulatory compliance and is not meant to judge the legality of any agreements or transactions the organisation has with its clients. Background The entity was found to be in violation of the KYC standards set forth by the RBI. As a result, a notification was sent to the organisation asking it to provide justification for not imposing a fine for failing to follow the instructions. After taking into account the entity's response, RBI came to the conclusion that the aforementioned accusation of failing to follow RBI instructions was true and called for the implementation of a financial penalty.